Fed: Banks get 2 years to comply with Volcker Rule

WASHINGTON — The Federal Reserve says banks will have two years to comply with a rule that would ban them from trading for their own profit.

The so-called Volcker rule is expected to take effect this summer. But the Fed clarified Thursday that it won’t enforce it until July 2014.

Congress directed regulators to craft the rule as part of an extensive regulatory overhaul passed after the 2008 financial crisis. Regulators hope it will limit the kind of risky trading that hastened the financial crisis and forced taxpayers to bail out the banks. It was named after former Federal Reserve Chairman Paul Volcker.

The Fed said it issued the statement to clear up confusion. Some banks had worried that they might have to start complying with the new restrictions sooner.